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3 Secrets About HVAC Bidding Process in 2020

Knowledge is definitely a power that should be shared. HVAC estimator’s role is to look at a mixture of complicated variables and use their knowledge to create an estimate for a project. This is then translated into the bid that will ultimately determine how much everyone is going to be paid.

You can easily think about how important the role of an estimator is! It can make or break an HVAC company. No matter what if the company is having the best technicians, the best managers, and the best people working in the office. If the estimator is not bringing the contracts, then no one can stop the company from closing as no one will be getting paid.

Wondering, what happens with HVAC estimators behind the scenes? What estimators are really looking in a bid? If you think that it is just thought it is just entering some numbers into a computer program, then you are wrong. Today we are going to find out some secrets present in the bidding process and will share the point of view of an expert in the industry.

Below are some of the questions asked:
a- Do people engage in unethical behavior?
This question is common in every industry. So, the common answer is Yes!

b- Is there any favoritism in the industry?
Yes, it does exist.

c- Does scheming project managers try to pull the wool on the estimator’s eyes?
It also happens more often than you think. According to the expert, 50% of the HVAC contracts are awarded depending on who you know? And how you are going to play the game?

1- HVAC Bidding Document - Why It is Complex?
According to an opinion of an expert, 80% of the bidding documents that are presented are poor or terrible. There is a great chance that you are going to encounter bad bidding documents most of the time. For an HVAC estimator, the appealing jobs will be that are having complete documents but this is very rare.It is important to note that the restaurants, schools, medical buildings, and office buildings are the common commercial clients who bid out their jobs to the commercial general contractors or to the professional H companies.

The owners of these buildings are coming from a wide range of personal and professional backgrounds. Most of the time, these people are not able to understand the complexities of defining an HVAC project. Sometimes, situations are even worse than they are not aware of the basic things like specifications or blueprints that are mostly inaccurate in a project that is going up for the bid. The reason behind this is that people are in a hurry and they try to complete the project quickly and get paid.Most of the time, the mistakes in the bidding documents are unintentional and these can be resolved by having a conversation on a phone call or by visiting a site. If still, the problem exists, then this will lead to a skewed bid.

Furthermore, in some cases, the projects will change during the bidding process. When these situations happen, then the contractors will try to get something instead of nothing. Note that in this business a person has to learn how they are going to work with people who are unethical. Note that there are different estimators involves like Ductwork EstimatorMechanical Estimator or others depending on the project.

It is surprising to note that most of the people in different sectors believe that the waters are muddied intentionally for confusing the subcontractor to get them to bid lower. Once the specifications are agreed upon, then the bid is officially accepted. After this, the client is asking the contractors to ensure that the job is done according to the written contract.Due to these reasons, the HVAC companies prefer to have experienced HVAC cost estimators who know about the ins and outs of the industry. There are a lot of sharks out there, so it is necessary to keep your eyes open.

2- Leaking of Estimate Number - Common and Intentional (Sometimes)
This thing should not happen but sometimes a company that is accepting bids for an HVAC project will leak the estimates that are already offered by some of the subcontractors. The project will be going to the lowest bidder, so leaking these numbers will be telling others how they have to set their price if they want to win the project.

This is done due to some of the reasons listed below:
This can be a trick to make the subcontractor come down to an artificially low price. Remember that if it is some low numbers, then they are trying to get more money out of the pocket.
b- This can be a point where knowledge is really power. The estimator would have taken a good and careful look at the project. The good construction estimating services definitely improve the worth of the project. This will enable the subcontractor for keeping very tight margins that will account for all the costs of a project. This will include materials, taxes, labor, and more. Note that by lowering a skilled estimator’s conclusion, this will probably result in the subcontractor going into the red zone and he would just walk away.
c- Estimates can also leak due to favoritism. It is the duty of a good HVAC company owner to figure out the difference between someone showing favoritism in comparison to someone trying to lower a bid artificially.

3- Estimates Are Not Correct Every time
The estimates can be low or high. It is not an easy thing to do but a good estimator can come up with highly accurate numbers the majority of the time.Remember that if the contractor is one of five companies that are not awarded a bid because the estimator was too high, then that is forgivable. Furthermore, when a contractor gets a job with the lowest bid but ends up going a million dollars over the budget, then the HVAC installation cost estimator has to give answers to many questions.

Knowing that the lowest bid always wins, then you should think that there is considerable pressure on the low-ball estimates. But doing that and if always going above the budget, then it is having its own blowback. These were some of the secrets that should be kept in mind during the bidding process. It is better to connect with professional companies who are using the HVAC quoting software for the estimates.